This invention relates to containers and more particularly to a holder for a paperboard cup, such as those commonly employed in vending machines and in fast food outlets for dispensing hot coffee. Cup holders may be fashioned of corrugated paperboard, molded plastic materials, or specially configured paperboard. In the fast food industry, one requirement of such holders is that they be inexpensive to fabricate, easy to store and use, while also yielding appreciable thermal insulation so that the consumers do not feel uncomfortable when holding a cup of hot coffee.